Critical Analysis of the brand LVMH: 539436


You are required to critically examine the marketing strategy of a commercial organisation of your choosing. The purpose of the assignment is to look at marketing strategy from a strategic perspective and to examine in depth one aspect of the organisations marketing strategy. You should focus on only 1 of the following strategies:

  1. STP (Segmentation, Targeting and Positioning)
  2. Branding Strategy
  3. Relationship Marketing Strategy
  4. Market Penetration Strategy
  5. Market Extension Strategy
  6. New Product Development Strategy

Extra Guidance:


Your discussion should include:

  • Marketing objectives related to the chosen strategy. This should be placed before the main discussion on Strategy.


  • The relationship between the firms’ competitive advantage and the chosen strategy. You will need to clearly identify what you consider to be the organisations competitive advantage(s).


  • Application of relevant models and theories to support your discussion. You are advised to include key academics in the relevant fields.


  • Clear conclusions with justified recommendations for improvements (from a critical perspective)

You can choose any commercial organisation. It is recommended to choose a medium to large size firm, where secondary information is readily available.

There are a large number of case studies on organisations such as Apple, Burberry, Starbucks etc, and some will be used in the seminars. If you choose a firm that we study in Seminar, the quality & originality of your analysis needs to be much more advanced and not merely a repeat of the seminar.

You are required to be analytical and critical and not merely descriptive. So ‘critically examine’ is a key term.

Use a proper report format, so a title and contents page should be included, with section headings and page numbers. There should be an introduction, main body and conclusion.

The assignment should be in a report format and 1,500 words in length (MAX). You should not exceed this amount.

Details of how marks will be awarded are in the tables below:

The word count excludes the title page, table of contents, list of references and appendix. You do NOT need an executive summary.


This will be returned to you with your marks and assignment feedback.

Feedback and the assignment mark will be given within 3 weeks of the submission date,  via Surreylearn.

  1. Presentation and Style (10 marks)

  Mark range MARK
The work is well structured and has a logical and well ordered flow between issues. Language used is sophisticated and articulate. Referencing is consistent and uses the Harvard method. Originality of thought is demonstrated 8-10  
There is a clear underlying structure to the work which makes it easy to read and understand. Referencing is consistent. Some original ideas 6-7  
The work is acceptably presented and has a clear structure. The arguments are clearly expressed although the language and terminology used lacks sophistication. Referencing is consistent. Lacking originality of ideas 5  
The work lacks a central narrative which links the issues discussed together in a coherent way. Referencing is haphazard. 4  
The work has no real structure and is more a collection of loosely related issues than anything. Referencing is haphazard and weak. There are errors of spelling, grammar and punctuation. 0-3  


  1. Use of Appropriate Models and Concepts (25 marks)

   Mark range MARK
A clear and sensible choice of models and concepts has been made with which to carry out analysis. The models are used well and develop clear and robust analysis which shows an excellent understanding of the model and how it can be applied. There is a clear link between objectives and strategy. 18-25  
A good choice of models and concepts is made and these models and concepts are used appropriately and correctly. There is some link between the objectives and strategy. 15-17  
Models chosen are appropriate to the example under discussion but the analysis derived from them could be further enhanced. The use of models has a limited impact on the analysis. A limited link between objectives and strategy. 12-14  
The use of models is haphazard and there is no clear rationale for why they have been chosen. The models deliver limited analysis and offer few if any insights into the example under discussion. Poor or little mention of objectives and poor relation to strategy. 10-11  
Limited or no use of models is demonstrated. Information about the company and its environment is simply described and there is nothing to guide or focus the analysis. Objectives are not mentioned with no link to strategy. 0-9  

  1. Evidence of Research and Understanding about the Organisation  (25 marks)

  Mark range MARK
The assignment uses a variety of sources, all of them reliable, to provide an excellent level of detail. A systematic approach is taken to the gathering of evidence and information about the company. Discussions and recommendations are supported by robust evidence throughout.  Excellent understanding about the organisation is shown. 18-25  
A good selection of sources are used to provide information about the company  and these are used to reach sound conclusions. A good understanding about the organisation is shown. Clear, well explained and justified recommendations are given. 15-17  
Different sources may be used to gather information but there is no real attempt made to distinguish between the quality of information presented. The use of information is unstructured and haphazard and provides a limited base for conclusions and discussion. Some understanding of the organisation shown. Recommendations, but lacking evidence and justification 12-14  
Whilst there is some information provided about the company, it will tend to be anecdotal and lacking in robustness. There is no real evidence of a systematic approach to gathering information. Conclusions reached do not reflect the quality of evidence provided. Limited understanding of the organisation shown. 10-11  
The assignment is too reliant on just one or two sources of information about the company and no attempt is made to examine the reliability and quality of those sources. Material presented is accepted uncritically and without question. 0-9  

  1. Discussion and Analysis (25 marks)

  Mark range MARK
The assignment has a clear focus on the question posed and answers it using sophisticated analysis and discussion. There is a clear structure and line of argument throughout the assignment.  There is a clear critical discussion throughout. Originality of thought and creativity is demonstrated. Excellent integration of competitive advantage with strategy.
Recommendations are clear, sensible, and well justified.
The assignment contains some good discussion and analysis.  Most of the assignment questions have been addressed well. The discussion overall is good and there is a good line of argument. Clear, justified recommendations are made Good integration of competitive advantage with strategy. 15-17  
The assignment attempts to answer some of the questions posed in a satisfactory manner. There is a blend of analysis and description but the assignment overall leans towards the descriptive rather than the analytical. Models may be used but there is no real attention paid to how theory can develop analysis and insights. Some attempt to examine competitive advantage with strategy. Some attempt to make recommendations for improvement. 12-14  
The assignment lacks a clear structure which focuses on the question posed and is mainly descriptive with no real analytical content. The assignment focuses on what has happened and makes no real attempt to use theory, models or evidence to explain why it may have happened and the implications of such things. The work is mainly descriptive. Poor or no mention of competitive strategy. Unjustified superficial recommendations, that lack links to analysis 10-11  
The assignment is little more than a collection of loosely related points about a company and the environment in which it operates. There is no integration between theory, models and evidence at all. No mention of competitive advantage or recommendations. 0-9  

  1. Conclusions (15 marks)


Conclusions reached are robust, clear and an accurate reflection of the preceding sections of the report. Conclusions draw together the different strands of theory and practice developed in the assignment. The conclusions show a high level of understanding of marketing strategy. 10-15  
Conclusions are a good reflection of the assignment overall and round things off in a clear and competent manner. An understanding of marketing strategy is demonstrated but differentiating between important and less important issues needed development. 8-9  
Reflections are a reasonable reflection of the work in the main body of the assignment. No real distinction is shown between important and less important issues but there is an adequate understanding of marketing strategy demonstrated. 6-7  
Conclusions do little more than restate what was in the main body of the assignment and so lack impact. No distinction is made between important and less important issues and limited understanding of the subject matter is demonstrated. 4-5  
Conclusions are weak, underdeveloped and have no real relationship with the work which preceded them. Conclusions do not suggest an understanding of either the theory or practice of marketing strategy. 0-3  


The company was formed in 1987 by the integration of fashion house Louis Vuitton with Moet Hennessy. It is a Europe based multinational luxury goods conglomerate which has its headquarters in Paris.  The Chairman and CEO of LVMH is Bernard Arnault. According to the information available the revenue of LVMH is 29.1 Billion Euros. It is the feeder of 1, 14,000 employees in around 70 countries (Rogers 2009). The business portfolio of LVMH deals with wine and spirits, fashion and leather goods, perfumes and cosmetics, watches and jewelry, selective retailing, media and other businesses. The luxury industry structure consists of features like symbolism which is called the most prominent factor, extraordinariness that is they produce different products as per the demand, rarity which emphasizes that the products are limitation and individuality, aesthetic importance, price and quality. These are some of the most beneficial factors required for surviving in the industry.

Marketing Objective

In this report I will be critically analyzing the marketing opportunity of LVMH. LVMH states that to ignite the desires of their customers by acquainting them with the presenting to them their house of works through their products and specialized areas. The team of marketing and communication works to attain this set objective of the company. The team consists of Marketing product development managers, operational marketing project managers, public relations managers, digital managers, advertising managers, press officers or events project managers, all the employees work efficiently, creatively and innovatively to develop products which suit the image and standard of the company. The brand aims at developing the best relationship with the customer throughout the world and serves its purpose. The purpose of this report is to analyze the marketing strategy of Louis Vuitton (Lynch. (2007)). The elevation in the name and fame of LVMH is something due to planning and strategies instead of good luck and will.


  • Specific- this is a smart objective of the marketing strategy which means focusing on one particular goal and target to integrate the effectiveness. In case of a new release or plan they need to work on the product release and audience integration.
  • Measurable- one needs to calculate the marketing plan, one needs to set up targets and goals worth measuring. The measurable goals should be effective and specific. In case one desires to expand his/her business they need to measure the value of success that they had attained in the previous years(Som. (2000)).
  • Achievable- the goals that are to be set should be achievable. One must set targets that can be achieved as a team. The marketing plan requires this target to be set(Ireland & Hitt (2007)).
  • Realistic: The company can achieve its realistic goals with the various resources and means available with them.
  • Time Related: There shall be a target guide set by the company to achieve its objectives for the successful and timely completion of the tasks.


The marketing strategy of LVMH aims to enhance the launch of a new product, from the initial idea to advertise. They work in order to convert the release of the product into an event. The task is that of orchestrating the release of a new product, from creation to commercialization. They often turn each launch into an event which is often marked success. The first and foremost objective is to adhere to the set goals and set the price of the product in accordance with the market expectations and positioning (Kapferer & Bastein (2012)). The main purpose it to coordinate all forms of media available for introducing the product to the customers through print advertisements, TV commercials, brochures, pamphlets and events. The Study of sales promotion is carried out by experts in order to derive drawbacks in turn to enhance demand and frame the offers in accordance to the requirements.

LVMH’s main strategy is about bringing diversification in luxury goods. In terms of corporate, business diversification, merger and acquisition are the prime responsibilities. Whereas, in business the main focus is on quality, innovation and marketing. The marketing strategy of LVMH includes competitive strategy as well, in which it plans onto the measures to be worked upon. It aims at creating and promoting unique services and entities. Their main objective is to fascinate the customer through brand image, quality, uniqueness, and services (Kapferer (2008)). According to the analysis they believe in providing distinguished quality, true quality to cater the satisfaction level of the customer. The distribution channels of the company are limited and restricted. The company doesn’t go more for TV commercials instead opts for magazine ad newspaper ads which consist of just images. The emphasis is laid on publicity that is through the media. The marketing strategy of Louis Vuitton consists of 4 Ps. The four Ps consist of product, place, price and promotion. There are different, set principles that are to be followed for these 4 Ps.

STP stands for segmentation, target and positioning.

Meanwhile, when I was going through the strategies of LVMH I noted, certain points which are somewhat disturbing for the LVMH.  Louis Vuitton has a huge competition from various other established and renowned brands like Gucci, Prada etc.  LVHM somewhere and somehow lags behind in terms of variety and has a restricted consumer base. In terms of offers, it doesn’t offer discounted sales on its products. It has failed in terms of establishing or positioning itself. It has not expanded to the extent it could have. When it comes to brands dealing in luxury my opinion is that LVMH has restricted retail opportunities, which drags it below the line as compared to other brands (Sirkeci (2013)). The fake products that are making a sale in the name of LVMH is another factor hampering its benefits.


LVMH requires strong and influential campaign images by utilizing celebrities, models and actresses. Brand name depends on the process of image building and that can be carried out with the help of campaigns and generating brand image. LVMH has the strength to meet up the taste, expectations and choices of a person (English (2013)). In terms of IT VMH is far behind, hence to enhance the customers and consumers they require to be more active on platforms. Taking up offers as a positive chance they must make various offers available like seasonal offers. Conduction of events is the best opportunity to avail the chance of connecting with the audience. There are numerous opportunities that can be availed very easily by Louis Vuitton, but the brand is somewhere lacking in taking them up and fulfilling them. This is one of the major drawbacks of this brand which prevents it from reaching the targets it can avail.


Louis Vuitton has several strengths as well in terms of its marketing strategies. Marketing has availed itself with a set image, recognition and value perception across the globe. The brand is known for its dedication and loyalty towards its customers. The customer believes in the absolute quality and services of the brand. If we talk in a layman language the company is really versatile as it offers a number of products for sale and does organize events for its marketing strength. They need more prominent faces to endorse their product to the masses. To tickle the emotions of the customers they prevent themselves from animal testing and keep in mind by providing a positive environment (Annoynomous (2007)).

Their main marketing strategy is about coming up with advanced designs and promotion ideas. The competition policy is always kept in mind and the new products are brought into existence with the help of promotional activities. The brand always keeps a record about the changing trends and preferences of the customers and prepares products as per the consumer’s intake. LVHM in my opinion has a good and  a neutral profile of the business. But, there are certain products that can rise up as compared to the rest products, but the place where they lag behind is marketing (Paul. (2012)).


LVMH uses the traditional as well as innovative media sources at the same moment which keeps it connected to different groups easily. Second. The use of massive advertising is an important factor and the success of LOUIS id dependent on it. The brand has always provided its users with the best services and brand value. They are frequent in adopting the new technological and trend developments (Bruce (2007)). LVMH manages the gross margin and tackle economical recession and financial crises in a convincing manner. It has organized go Green River action and has mixed into social province and has developed and integrated their programs related to consciousness across the globe. LVMH socially connects with the customer through the website and media, which went to brand awareness and Cash, advance communication and the media are excellent sources available for advertisement and communication. Various products are available in the wide range and multiple choices which are marketed properly according to the development strategies and methodologies developed by the employees and the managers.

Competitive advantage

The competitive advantage of LVMH includes the uniqueness of its services and products. It focuses on conglomerate diversification with the business lines. The company is highly profitable and substantial and is a global leader in the industry. The company is differentiated from competition due to various reasons. Some of them include well developed, strong leadership, and focus on innovation.


The company, according to my research has a good set of policies, principles and strategies to follow.  But the company needs a lot of work when it comes to competing with the other brands available in the market. Though they have a working style which is quite similar to other brands it is vital for them to match up the services and brand image of other companies so that they can rise above the level they are currently at. Being a diverse brand it can work a lot more on its services by altering its marketing strategy, competitive strategy and lots more. I have mentioned the weaknesses of the brand in my report and in my opinion, they are very minor things and objective they are missing to cater or reach. The company has a lot of appreciable concepts well, but to me success comes when you remove or eradicate all the flaws and loopholes in your system.


Annoynomous (2007), Marketing Channels – Page 128, cademic Press, London.

Bruce, M (2007), International Retail Marketing – Page 162, Springer Publication, New Delhi.

English, B (2013), A Cultural History of Fashion in the 20th and 21st Centuries, Oxford University Press, London.

Ireland, D & Hitt, M (2007), Understanding Business Strategy: Concepts and Cases – Page 107, Cengage Learning, Canada.

Kapferer, J (2008), The Luxury Strategy: Break the Rules of Marketing to Build Luxury Brands, Prentice Hall, London.

Kapferer, J & Bastein, V (2012), The Luxury Strategy: Break the Rules of Marketing to Build Luxury Brands, New York.

Lynch. (2007), Corporate Strategy – Page 249, 4th edn, Pearson Education, 2007, New DElhi.

Paul. (2012), INTERNATIONAL MARKETING – TEXT & CASES – Page 259, Paerson Publishing, London.

Rogers, S 2009, The Supply-Based Advantage.

Sirkeci, I (2013), Transnational Marketing and Transnational Consumers – Page 20, Irwin, New York.

Som. (2000), International Mgmt – Page 603.